Individual income tax on salaries and wages is computed at progressive rates ranging from 3% to 45% as follows. An allowance of RMB 3,500 and RMB 4,800 per month are deducted from salaries and wages to arrive taxable income for local employees and foreigners, respectively.
No. | Taxable income | Tax Rate | Quick calculation deduction |
1 |
<= RMB 1,500 |
3% |
0 |
2 |
RMB 1,501 – 4,500 |
10% |
105 |
3 |
RMB 4,501 – 9,000 |
20% |
555 |
4 |
RMB 9,001 – 35,000 |
25% |
1005 |
5 |
RMB 35,001 – 55,000 |
30% |
2755 |
6 |
RMB 55,001 – 80,000 |
35% |
5505 |
7 |
>= RMB 80,001 |
45% |
13505 |